KUWAIT CITY, Sept 25: Kuwait Finance House in Bahrain (KFH-Bahrain) revealed that it leads efforts to arrange the merging of three Bahraini Islamic banks, which will result in the birth of the biggest Islamic bank in Bahrain and one of the biggest in the region; thus serving as a platform for further merging operations in Bahraini and other markets in the area. KFH-Bahrain’s CEO and Managing Director Abdul Hakim Al-Khayyat explained that this operation will result in a banking entity with capital of $400 million and assets that reach $500 million, which are the total number of capitals and assets of the three banks. He added that it is difficult to set an exact time frame for the merging operation, but said that it will probably take 6-9 months, in light of the enthusiasm of all concerned parties.

Regarding KFH-Bahrain’s role in the merge, he explained that the bank serves as a coordinator and consultant for the operation. He went on to say that the bank proposed the merging concept in light of its strong relationships with the three banks, in addition to boost Islamic banking worldwide. He remarked that KFH-Bahrain possesses the necessary technical, financial, and human resources to spearhead the merging operation efficiently.

Moreover, he stressed that the merging process will lay the foundation for the birth of competitive financial institutions that possess strong financial coverage. However, Al-Khayyat said that it is too early to disclose the names of the three banks, but asserted that the names will be announced in a few weeks when negotiations reach an advanced state. He mentioned that being part of such an operation stems from KFH’s belief that Islamic banks can lead the global economy; especially after the recent global financial crisis.